he and jake bernstein won a pulitzer prize for their coverage of questionable wall street practices. >> thanks for having me. >> so tell us, what is it that the sec is saying exactly that j.p. morgan chase did? what was illegal about it? >> well, these were collection of deals that were designed to fail. and in this specific field, what happened was a hedge fund bought a little piece of the deal to enable j.p. morgan to go out and sell a $1.1 billion mortgage-backed security deal called a cdo which stands for collateralized debt obligations. they went around the world and sold it but they didn't tell the customers they were selling these securities to that in fact this hedge fund had a much bigger bet against the cdo, and in fact, helped select assets, put stuff into the deal that would otherwise, that would go bad. that made the deal kind of rotten. and j.p. morgan didn't tell anybody this when they were selling it. >> and that's illegal, prommably. >> that's misleading. the sec determined that was a material aspect of the deal that needed to be disclosed. that this hedge fund had a